With a measured decline of -74 percent, MATIC price has triggered a symmetrical triangular pattern.
Today’s -6 percent dip comes after two consecutive inside days, indicating that investors are bracing for a significant price increase.
The $0.921 low on June 22nd may be enough to stem Polygon’s precipitous fall.
On the charts, MATIC price formed a massive symmetrical triangle pattern, which is set to trigger today. Polygon is now vulnerable to a big loss following the downside breach, which might test the 200-day simple moving average (SMA) if the entire cryptocurrency complex experiences additional selling pressure.
The -21 percent decline through the ascending 2021 trend line on June 21 was a significant caution sign for Polygon believers, and it generated a new range of resistance for MATIC pricing that included the trend line, the 50-day SMA, and the Anchored VWAP. On June 22, the digital asset sought to stabilize the steep loss with a doji candlestick, but the price action that followed was marked by hesitation and accompanied by plummeting volume levels.
The symmetrical triangle pattern was triggered today, exposing MATIC to a large drop. The Polygon symmetrical triangle has moved around 74 percent, implying an ultimate low of $0.269. The 200-day SMA support at $0.624, the 38.2 percent Fibonacci retracement of the 2021 rise at $0.394, and the lows of the trading range created during March-April at $0.287 would all be defeated by a fall of that size.
A daily closing below the June 22 low of $0.921 would confirm the symmetrical triangle pattern’s new bottom leg. The May 23 low of $0.743 and the 200-day SMA at $0.624, indicating a 36 percent drop from the current MATIC price, are the next credible levels of support for Polygon.
A other Polygon support level is the $0.544 high dated March 11, which represents a 44 percent drop from the current MATIC price. A jump to the measured move target of $0.269 would be unexpected.
Daily MATIC/USD chart
Today’s symbolically significant $1.00 may halt the Polygon sell-off, but a close above $1.18 may force a rethinking of the pessimistic outlook for MATIC pricing.
For the time being, the MATIC price is in the early stages of a new downturn, which might result in a massive loss for long-term Polygon investors. However, before the dip becomes a high-probability short opportunity, the digital asset requires more proof./n
